Oil minister of Venezuela proposing a global oil freeze

The oil minister of Venezuela said Iran would have higher oil output by September, creating the need to discuss a global production freeze. He said the idea could be discussed at an event in Algeria, proposing OPEC formally implement a “production ranges” policy that would allow output to fluctuate by certain amounts. This would prevent further talks on a production cap and individual quotas. “We will have production ranges and will monitor them constantly. That would give flexibility to correct things real time,” he added.

As with many other countries who have suffered greatly, Venezuela has been hit hard with the price collapse and production halt. But Del Pino, Venezuela’s oil minister, said recent rains have helped power production necessary for functioning, giving them the bounce back into the market. “Venezuelan production is not out of control… Electricity supply restrictions have been removed today. Output is rising”.

Del Pino said output will increase to 2.8 million barrels per day by the end of 2016. He said talks were in the works with 2017 bond holders but did not mention the offers for a swap for a new debt. Venezuela and China are in discussions on trading but declined to speak on the changing terms it has with Beijing in exchange for oil.